Journal of Finance Vol. 43 No. 4 1988

Testing Rationality in the Point Spread Betting Market

JOHN GANDAR; RICHARD ZUBER; THOMAS O'BRIEN; Ben Russo^1,2

¹ University of North Carolina at Charlotte · ² University of Connecticut

Abstract

This paper presents empirical tests of market rationality using data from the point spread betting market on National Football League games. Data from this market avoid many common pitfalls of tests of rationality in conventional financial markets. The authors test for rationality with two types of tests, statistical and economic. Results of the tests reveal that the statistical tests cannot reject market rationality while the economic tests do reject market rationality.

DOI

10.1111/j.1540-6261.1988.tb02617.x

Volume

43

Issue

4

Pages

995-1008

Language

en

Sources

openalex crossref

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓